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Indian Bank.

BSE: 532814 Sector: Financials
NSE: INDIANB ISIN Code: INE562A01011
BSE LIVE 19:40 | 19 Oct 259.40 -3.85
(-1.46%)
OPEN

263.25

HIGH

263.25

LOW

256.50

NSE 19:49 | 19 Oct 258.05 -5.05
(-1.92%)
OPEN

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HIGH

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OPEN 263.25
PREVIOUS CLOSE 263.25
VOLUME 15483
52-Week high 364.80
52-Week low 190.30
P/E 8.47
Mkt Cap.(Rs cr) 12,459
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 263.25
CLOSE 263.25
VOLUME 15483
52-Week high 364.80
52-Week low 190.30
P/E 8.47
Mkt Cap.(Rs cr) 12,459
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indian Bank. (INDIANB) - Director Report

Company director report

DIRECTORS' REPORT 2016-17

To

The Members

Your Directors have immense pleasure in presenting the Banks Annual Report along withthe Audited Statement of Accounts and the Cash Flow statement for the year ended 31stMarch 2017.

FINANCIAL HIGHLIGHTS

The major highlights of your Bank's performance during FY 2016-17 are as follows:

• Global Business of the Bank reached Rs. 314654 crore during the yearregistering a growth of 1.20 %.

• Total Deposits grew by Rs. 4223 crore (2.37%) for the financial year 2016-17 toRs. 182509 crore.

• Gross Advances stood at Rs. 132145 crore as on 31.03.2017. OverallCredit-Deposit ratio was at 72.40 %.

• Priority Sector Advances was at Rs. 54976 crore as on 31.03.2017. Prioritysector as a percentage to quarterly average Adjusted Net Bank Credit (ANBC) for 2016-17stood at 42.31% as against the mandatory target of 40.00%.

• Agriculture Credit was at Rs. 24820 crore and the percentage to quarterlyaverage ANBC stood at 19.95% as against the mandatory target of 18.00%.

• In accordance with the priorities accorded by the Government of India the BanksAdvances to SC/STs reached Rs. 2244.86 crore as of March 31 2017 constituting 4.08% oftotal Priority SectorAdvances.

• Net Interest Margin was at 2.59% for FY 2016-17.

• Operating Profit increased to Rs. 4000.71 crore as against Rs. 3032.09 crore forFY 2015-16.

• Net Profit for FY 2016-17 was at Rs. 1405.68 crore as compared to Rs. 711.38crore for 2015-16.

• Return onAverageAssets was at 0.67% for FY 2016-17 as against 0.36% for FY2015-16.

• Capital Adequacy Ratio (Basel III) was at 13.64% as at March 31 2017 ascompared to 13.20% as at March 31 2016.

• Return on Net worth for FY 2016-17 was at 9.97% as compared to 5.46% in FY2015-16.

• Gross NPA was at 7.47% as on March 31 2017 as against 6.66% as on March 312016 while Net NPA was at 4.39 % as on March 31 2017 as against 4.20% as on March 312016.

• Total recovery of NPAs during FY 2016-17 amounted to

Rs. 846 crore as against Rs. 901 crore in the previous year.

• Earnings per share were at Rs. 29.27 and Book value was at Rs. 301.10 as on31.03.2017.

• Total domestic branch network of the Bank in India increased to 2679 as on31.03.2017 from 2562 as on 31.03.2016. Besides the Bank has 3 overseas branches takingthe total branch network to 2682.

• Total number ofATMs increased to 2816 as on 31.03.2017 from 2531 as on31.03.2016 which includes 716 offsite ATMs and customers can access more than 2.1lakhATMs in the (NFS) shared network.

• During the year Bank deployed 289 Cash Deposit Machines/Bunch Note Acceptorswith recycling functionality wherein the machines can receive and dispense cash to thecustomers. Bank installed 122 e-lounges at various locations which are unmanned kioskswith BNAs secured pass book printers and cheque deposit machines with 24 x 7 operationson all days including holidays.

INCOMEAND EXPENDITURE

• During the year 2016-17 total income of the Bank increased by 1.25% to Rs.18251.12 crore with Interest Income at Rs. 16039.75 crore and other Income at Rs.2211.37 crore.

• The Bank s total expenditure decreased by Rs. 742.70 crore (-4.95%) to Rs.14250.41 crore during FY 2016-17.

• Total operating expenses was at Rs. 3356.73 crore for FY2016-17 as compared toRs. 3195.51 crore in FY2015-16.

IMPORTANT RATIOS FOR THE PERIOD OF 2016-17 ARE AS UNDER:

(in %)
Parameters 2016-17 2015-16
Yield on Advances 9.17 9.63
Cost of Deposits 6.03 6.76
Return on Assets 0.67 0.36
Cost Income ratio 45.62 51.31
Business per employee ( Rs. in lakh) 1487.73 1531.19
Profit per employee ( Rs. in lakh) 6.72 3.53

DIVIDEND

• The Board of Directors have recommended a dividend of 60% for FY 2016-17. Thedividend shall be subject to tax on dividend to be paid by the Bank. The total outflow onaccount of dividend for FY 2016-17 is Rs. 288.17 crore excluding dividend tax. The payoutratio works out to 20.50%.

NETWORTH AND CRAR

• Networth of the Bank improved to Rs. 14461.59 crore as on 31.03.2017 from Rs.13478.35 crore as on 31.03.2016 registering a growth of 7.29%.

• As per Basel III norms the Capital to Risk weightedAssets Ratio (CRAR) was at13.64% as on March 2017 compared to 13.20% as of March 2016 against the requirement of10.25%. The CET- I ratio was 11.82% as of March 2017 as compared to 11.68% as of March2016 and against the minimum requirement of 6.75%. The CRAR of Tier I capital was 12.20%as of March 2017 as against 12.08% as of March 2016 and as against the minimum requirementof 8.25%.

(in %)
As on
BASEL III March 2017 March 2016
CET- I 11.82 11.68
Tier- I Capital 12.20 12.08
Tier-II Capital 1.44 1.12
Total 13.64 13.20

RECRUITMENT /TRAINING

As per Government guidelines pre-recruitment and pre-promotion trainings were offeredto SC/ST employees during the process of direct recruitment and internal promotions.

CHANGES IN THE BOARD DURING THE YEAR

• Shri Padmanaban Vittal Dass was nominated as a Part Time Non-Official Directoron the Board of the Bank by Government of India for a period of three years with effectfromApril 25 2016.

• Shri P Venkata Krishna Rao was Workmen Employee Director upto May 28 2016.

• Shri Vijay Kumar Goel was appointed as Chartered Accountant Director of the Bankfrom July 26 2016.

• Shri. R Subramania Kumar was Executive Director upto September 29 2016.

• Shri J K Dash was appointed as RBI nominee to the Board on November 16 2016 inplace of Shri B P Vijayendra who ceased to be RBI Nominee Director from October 31 2016.

• During the period under review Shri. M K BhattacharyaassumedchargeasExecutiveDirectoronFebruary162017.

• Shri Deepak D Samant was Officer Employee Director upto March 10 2017.

DIRECTORS RESPONSIBILITY STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year endedMarch 31 2017:

• The applicable accounting standards have been followed along with properexplanation relating to material departures if any;

• The accounting policies framed in accordance with the guidelines of the ReserveBank of India were consistently applied;

• Reasonable and prudent judgment and estimates were made so as to give a true andfair view of the state of affairs of the Bank at the end of the financial year and of theprofit of the Bank for the year ended March 31 2017.

• Proper and sufficient care were taken for the maintenance of adequate accountingrecords in accordance with the provisions of applicable laws governing banks in India; and

• The accounts have been prepared on a going concern basis.

ACKNOWLEDGEMENT

The Board expresses its deep sense of gratitude to the Government of India ReserveBank of India and Securities & Exchange Board of India for the valuable guidance andsupport received from them. The Board also thanks the financial institutions andcorrespondent banks for their co-operation and support. The Board acknowledges theunstinted support of its customers and shareholders.

The Board places on record its appreciation for the valuable contribution made by ShriR Subramania Kumar Shri B P Vijayendra Shri P Venkata Krishna Rao and Shri Deepak DSamant who ceased to be members during the year.

The Board also places on record its appreciation for the valuable contribution made byShri Mahesh Kumar Jain MD & CEO who demitted office onApril 03 2017.

The Board places on record its appreciation for the dedicated services and contributionmade by members of staff for the overall performance of the Bank.

For and on behalf of Board of Directors

KISHOR KHARAT

Managing Director & CEO